Can Beijing end the race to the bottom?
In the first half of 2026, five of China's largest solar manufacturers — Tongwei, Longi, TCL Zhonghuan, JinkoSolar and JA Solar — reported combined net losses of more than CNY 17 billion, as persistent oversupply held prices below levels that support normal returns. Beijing's response, an "anti-involution" campaign, combines price regulation, standardized cost accounting, mandatory efficiency and energy-consumption rules, tax changes and pressure for capacity rationalization. On Aug. 6, eight major polysilicon producers signed an anti-involution pledge to keep sales prices, including tender bids, at or above full cost as calculated in the China Photovoltaic Industry Association's cost model.
Why it matters: The shift from appeals for self-discipline to enforceable cost and efficiency rules shows industrial policy being used to restructure a strategic manufacturing sector rather than to lift prices alone.